Independent development company Backbone Entertainment, best known for porting popular video games to portable and digital platforms, has been hit by a round of layoffs, according to media reports.

Multiple sources, including Disney Interactive Studios development director John Vignocchi, are reporting that the Emeryville, California-based company is also on the verge of closing down completely, with the layoffs a step towards making sure that a full shut down doesn't happen.

[UPDATE: James North-Hearn, CEO of Backbone conglomerate company Foundation 9, has now confirmed the layoffs to Gamasutra. In a statement, he said, "I regret to announce a round of layoffs at Backbone Entertainment. The studio will continue to operate at a reduced size and will honor its commitments to existing partners."

"Due to a lower demand for conventional console development, the studio has made some difficult but necessary adjustments in both its capacity and services, with the goal of matching the changing needs of today's market. The dedicated development staff at Backbone has put together some of the studio's best work for our partners in the upcoming fall releases, Dance Central 3 and Midway Arcade Origins."

"I would like to publicly thank the departing members for their incredible service to the company. All of us at Foundation 9 are sorry to lose them and we’re here to help them to a soft landing. We wish them well in their individual pursuits."]